Business Strategy for Sainsbury: PESTLE, SWOT, and Porter's Five Forces Analysis

This report outlines the business strategy for Sainsbury, including PESTLE, SWOT, and Porter's Five Forces analysis. It also includes valid strategies and tactical objectives to achieve overall strategic objectives. The report focuses on the differentiation strategy for attaining growth while operating in the dynamic market. The report also emphasizes the internal resources, including human resource, financial planning, marketing, and brand image.

Business strategy

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
PESTLE and SWOT of the organization and evaluation of the organization resources and
capabilities...................................................................................................................................3
Porters five forces of Sainsbury ..................................................................................................5
Identifying and Justifying of the organization’s existing and potential competitive advantage..7
Valid strategies and tactical objectives to achieve overall strategic objectives...........................7
PART B............................................................................................................................................9
Evaluation on the different type of strategic directions to organization .....................................9
Justification and recommendations to appropriate strategy.......................................................11
Evaluating the ways in which chosen strategy can be monitored..............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy refers to the clear plans and set of actions that helps the company to
outline the competency of the business in the particular market. The current assignment is based
on Sainsbury which is one of the largest retailer in the UK market. The company used to have
14.9% of the supermarket sector share. The current report will put focus on the PESTLE and
SWOT analysis of the chosen company and the description of the resources and capabilities.
Further this report will outline the competitive environment by using the Porter's five forces.
Furthermore, this report will outline the strategies and tactical plans. Moreover, this report will
also put focus on the different strategic directions and the valid recommendations to have growth
in the market. At last this report will indicate the monitoring and controlling of the strategies in
order to measure the success in the competitive market.
MAIN BODY
PART A
PESTLE and SWOT of the organization and evaluation of the organization resources and
capabilities
PESTLE ANALYSIS
Political factors
Sainsbury is mainly recognized as for serving wide range of food and non food products
to large number of audiences. The rules and regulations mainly impacts the company operation
and their working for attaining competitiveness while operating in the dynamic market. As the
imposition due to the covid pandemic and the Brexit impacted the company operations as the
government restricted the business physical operations an limited the scope to operate the
business with using online channels.
Economical factors
Various economic factors impacting the company an its internal operations including the
changes in the taste and preferences of the consumers, as due to pandemic and due to Brexit
impacted the imports for attaining the fresh product from the EU markets. This aid in including
the company to adopt the changing needs and preferences (Whelan and et.al., 2020). Also, with
the rise in the fuel prices, the rise in the salary expectations impacts and reduce the company
profits while operating in the dynamic environment.
Social factors

Various social factors impact operating the company , as the consumers are more shifting
towards preferring to adopt more healthier and organics nature products. With adopting changes
results in reducing the profits and cost of production (Clark and et.al., 2021). Also the cultural
environment impacts the company for adopting and reducing the products according to the
different culture, attitude and behaviours.
Technical factors
Different technical changes in the economy impact the business and its operations for
serving wide range of consumers with adhering the needs and want. The increasing use of online
channel for increasing sales in the company to serve the product with using website. Also
adoption new ways of accepting the payment from the phone just by scanning the bar code by
limiting the queuing time limit (PESTLE Analysis of Sainsbury’s, 2022). These all technical
patterns and the trends impact the company and its operations.
Legal factors
Various legal rules and regulation to be complied by the company as to operate and serve
as the dynamic market by ascertaining their need with following the consumers protection act,
minimum wages act, equality act. By failing to comply and operate supermarket in the dynamic
market impacts the operations.
Environment factors
Various environment rule and regulations impose by the government and the gas
emission and the climatic conditions impact the company and its operations while operating in
the dynamic market for serving wide range of products to the consumer. For this the company is
maintaining the policy as for maintaining and reducing the carbon emission by packing the
product with recyclable in nature.
SWOT ANALYSIS
Strengths
 Being globally recognized for serving
wide rage of food and non-food product
from the product portfolio to the
consumers in the dynamic market help
in gaining competitiveness (Sainsbury's
SWOT Analysis, 2022).
Weakness
 By increasing the prices due to
uncertain pandemic and Brexit
conditions impact the profit.
 Lack of financial stability hinders
increasing set revenues.
 With the high competitiveness market

 Listed in the London stock exchange
helps in trading globally.
impact the company for maintaining
and Selling products at low margins
this impacts the profits and revenues
(Kitsios and Kamariotou, 2021).
Opportunities
 Selling products and providing service
by serving 24/7 by using automated
technology helps in increasing sales of
the products.
 Expanding the business into the
emerging markets helps in attaining
growth.
 Adopting and serving the consumers
with producing the products by
ascertaining the latest trends helps in
gaining growth and expanding the
product lines with satisfying the
consumers needs and preferences.
 Adopting and using the self checkout
machine and technology helps in
boosting sales.
Threats
 While operating In the highly
competitive market the main
competitors are Tesco, ASDA serving
wide rang of food and non-food product
similar to the company impacts its
earning and the business operations.
 The uncertain dynamic surrounding as
due to covid and pandemic uncertainty
impact the business operations.
 The legal laws and regulations impacts
the company and its operations for
operating in the dynamic market as to
attain competitiveness while operating
in the dynamic environment.
 Various controversies of the company
impact its business and its operation's
while operating in the dynamic market
as for attaining competitiveness.
Porters five forces of Sainsbury
Porters five forces is the strategic tool that helps the company to analyse and understand
the profitability in the working industry. The company can evaluate these five forces as this helps
them to develop the strategy in order to compete in the market (Direction, 2022). Sainsbury is the
second largest supermarket store that helps them to have better competition in the market. In
order to evaluate the competitive environment of the company, the porter five forces are
described below:

1. Threats of new entrants: The power of the company is basically affected by the new
entrants in the market. By having the strong entry barriers helps the company to have
better competition in the market. As Sainsbury is one of the leading firm so the threat of
new entrants in the market is very less. This will not affect the working of the company
by entering of nay new firm in the market. The cited company has to deal with the
competitors in the market.
2. Bargaining power of suppliers: In this forces the suppliers used to bargain with the
company in order to supply raw materials in the market. As the company used to operate
in the retail industry so there are many suppliers in the market (Liangrokapart and
Sittiwatethanasiri, 2022). the bargaining power of the suppliers is low which makes the
company to have better operations in the market. The impact of the suppliers bargaining
power is low as it used to operate in retail sector.
3. Bargaining power of customers: The customer ability in the market is to have the low
process of the product. The company profitability is basically affected by the bargaining
power of the customers in the market. Sainsbury has the large number of customers that
helps them to have low bargaining power of the customers. As is the leading company to
the company has the target customers that helps them to have better profits in the market.
4. Threat of substitute products: In this force, there is availability of the same or
substitute products in the market that affects the selling of company. As the cited
organisation is the supermarket store so it used to have large number of substitutes
products in the market. This used to have great impact on the working and selling of the
products in the competitive market. The threat of substitutes of the products sell by the
company is high as there are many other companies who used to sell same type of
offerings in the market.
5. Rivalry among the existing players: The competitive forces used to show the ability of
the competitors in the market. If the company used to have large competitors than it will
affect the profitability of the company (Sainsbury's suppliers and Porter's Five Forces,
2022). Sainsbury used to operate in the competitive industry that will have negative
impact on the working of company.

As from the above analysis it is seen that the company used to have great competition in
the market. This will have great impact on the working of the company and decreases the market
share of the company.
Identifying and Justifying of the organization’s existing and potential competitive advantage
With using the porter five forces model, it helps in defining about using strategies which
helps in attaining competitiveness while operating in dynamic market. Sainsbury is mainly using
the strategy to serve wide range of products to the consumers at the fair prices. As the company
is being global recognized for serving the food and non-food products to the consumers helps in
attaining competitiveness while operating in the dynamic market. Further, for serving
differentiated products with the unique features at the fair price helps in retaining loyal
consumers market while serving at global level. As for minimizing the threat of substitute of
product availability with serving the best quality and delicious food in nature helps in attaining
competitiveness at the fair prices. This satisfies the needs and wants of the consumers at the
prices paid by attaining the equal value. Also establishing the stores globally helps to shop with
convenience (Sainsbury's suppliers and Porter's Five Forces, 2022). This result in serving wide
range of products by maintaining the quality and value of offering products at wide ranges.
Further more, for branding and positioning the company is using wide range of social
media strategies for promoting the products and retaining its market share as by targeting and
Selling wide rang of products to the consumers at the best quality and providing full information
of the product with adopting sustainable packaging. Thu, by adopting various strategies as for
maintaining the impact of the thereat of competitors and new entrants helps in attaining
competitive advantage to the company while operating in the dynamic market.
Valid strategies and tactical objectives to achieve overall strategic objectives
Strategic management plan for Sainsbury:
Background:
Sainsbury is recognized as the multinomial retailer which is serving wide range of food
and non-food products to the consumer while operating in the dynamic market as for sustaining
and attaining the market growth. The company is mainly offering delicious food products at the
competitive prices and providing convenience to the consumers by serving globally.
Organizational structure:

Structure adopted by the company is mainly involving the matrix structure, which is
mainly combining two or more structure in the company. With adopting the structure it helps the
company to adapt the changing situation and dynamic environment and helps in competing with
the competitors effectively as by serving consumer in large target market with wide range of
product portfolio. This mainly includes the restocking of products department, serving with
quality package products with ensuring hygiene and cleanliness.
Vision:
Sainsbury vision is to serve and treat all the individual in fair manner by establishing as
most trusted retailer where individual love to work and shop all the products as it is providing
wide range of food and non-food products to large number of consumers.
Mission:
The mission statement of the company is to serve and work as by respecting working
environment by ensuring healthy living for the employees working enthusiastic as for serving
and establishing the great and better working place by ensuring positivity.
Marketing mix:
Marketing mix adopted by the company as to formulate the strategy according to the
product, price, place and promoting the products of the company as to attain competitiveness and
increase sales.
 In Product strategy the company is mainly producing wide range of product portfolio as
for attracting large number of consumers including fruits, vegetable, beauty products,
dairy, bakery, baby products, household and electronics.
 In the pricing strategy serving products at fair and competitive prices as to attract large
number of consumers while operating in the dynamic market.
 In the placing strategy the company is mainly serving its products by adopting the offline
an online channel as for providing the consumers with satisfying their needs according to
the convenience.
 For promotion using social media sites for persuading the consumers as to purchase the
products offered by Sainsbury as by using the TV, radio, billboards this helps in building
brand image which helps in building the loyal consumers.
Strategy formulation:

With using the bowman clock model, adopting the Differentiation strategy for attaining
growth while operating in the dynamic Market with using this strategy it helps in attaining
growth by introducing new range of product portfolio by mainly focusing n differentiation the
products and services offered with adding unique features. This helps in providing maximum
level of satisfaction to the consumers by offering high quality of unique products than that of the
competitors (Huang and Feng, 2021). With formulating this strategy helps to induce th
consumers to willingly pay the prices with offering unique products with features. With charging
high prices for the products being offered help in attaining growth and competitiveness with
Selling different featured products than the competitors.
As by using the VIRO model, by emphasizing the internal resources with taking the
human resource, financial planning, marketing and the brand image. With utilizing all these
internal resources as for differentiating the products in the Sainsbury by offering with adding
new features and packing which are more sustainable in nature. With this aligning the human
resources and planning the finances for differentiating which helps in creating brand image.
Implementation:
Implementing the differentiation strategy from the bowman and porter framework as by
organising all the activity with producing the differentiated product with hiring and employing
potential employees for working and serving the company. Also by aligning the vision and
mission as to differentiae products the wide range of beauty, baby and electronic products with
adding new features with low and high range with better quality at fair prices.
Evaluation:
With applying the differentiation strategy and evaluating with using the KPI , this helps
in analysing the business performance and growth by Selling differentiated products to the
consumers in the dynamic market.
PART B
Evaluation on the different type of strategic directions to organization
Strategic directions is defined as the plans that is needed to be implemented in the
organization to have focus on vision and gaols of the company. It makes the company to have
better management and communication in order to achieve business objectives (Echchakoui,
2018). The different strategic directions available to the organization is as described below:

Bowman's strategy clock: In this there are basically eight directions that helps the
company to have the different strategy which is stated below:
11 Low price and low value added: This strategy refers to the quantity of selling of
the products. The products of the company are basically low in value and the
prices is lowest.11 Low prices: This strategy is all about the having the low cost in the market that
attracts the customers. This strategy used to have low margins and have better
efficiency in order to be successful.11 Hybrid: This strategy is about the position between the low prices and
differentiation (Kim, 2020). It helps the company to have the competitive
advantage by selling differentiated products at the lower rate.11 Differentiation: In the differentiation strategy that helps the company to focus on
the different products and services. This makes the business to have the
competitive advantage and have better competition in the market. This used to
have unique spectrum that attracts the customers to buy such product.11 Focused differentiation: In this strategy, it used to provide the high value at the
high process. If this strategy is successfully adopted it helps the company to gain
the high profits in the market. This is somehow difficult to manage the things as
the company used to sell the products at higher rate.11 Risky high margins: The name of the strategy itself suggest that the company
has to take the high risks in order to survive in the market. The main aim of the
company is to have the high prices in the market by taking the risk.11 Monopoly pricing: In the monopoly market share the company used to have
control on the pricing and products (Echchakoui, 2018). As there is only
monopoly so there are no competition as there is only single firm in the market.11 Loss of market share: This is basically the negative position and this makes the
company to take exit or have decline in the profits. This strategy is basically
chosen if the company has to enter the new market.
Porter's Generic strategy: the porter's generic strategies used to consist of three types that
is described below:

11 Cost leadership: This strategy used to involve the market share by having the
cost-conscious or by having the price-sensitive customers. This is basically
achieved by having the target market by providing the products and services at the
lower prices. By this the company used to have the good selling of the products in
the market.11 Differentiation; In this strategy, differentiate products and services are offered in
the market. This type of strategy is appropriate when the company used to have
the good target customers who are not price sensitive.11 Focused: This strategy used to focus on the focus groups in the market and
provide them good products at the good rate. The company who has to avoid the
competition in the market used to have this type of strategy in the market.
Justification and recommendations to appropriate strategy
From the above it is seen that Sainsbury used to have different types strategic directions
that helps them to have god market share. But the company has opted the Differentiation strategy
which helps the company to sell the unique products in the market. As the cited company is one
of the leading company that makes them to have the good market share by adopting this strategy
in the market. This helps the company to have reduction in the price competition as the
customers are not price sensitive in order to buy the products.
It makes the customers to have the unique products that attracts them to have better
selling of the products and services in the market (Sangwa, 2021). This strategy also helps the
company to have increase in the profitability in the market. By having the differentiation
strategy, it helps Sainsbury to have the good customer perceive and offer something different in
the competitive market. The benefit for the choosing this strategy is to have protection against
the substitute products and providing the best product to the customers. This strategy used to
work best as there are many competitors of the cited firm that decreases the profitability but this
strategy helps them to have better market share. It is somehow important to have the
differentiation strategy as this helps the company to have the unique product and have more
target customers in the market.
Evaluating the ways in which chosen strategy can be monitored
There are several things that helps the company to monitor the success n the market. This
can be done by using the key performance indicators. It is basically the quantifiable measures

that helps the company to measure the profit with the set target by the company. This also makes
the company to make the better decisions and measure the success by using this performance
indicator. It is very important for Sainsbury to measure the success which makes them to know
about the gained success in the market (Islami, Mustafa and Topuzovska Latkovikj, 2020). This
indicator helps the company to set the target and measure the progress in order to make the
positive decisions by the firm.
Further the company can also opt the variance analysis that helps them to find out the
deviation of the planned behaviour with the actual results in the market. The gap between both
helps the company to know and make the proper plan in order manage the gap analysed by them.
It is considered to be one of the most important performance indicator that makes the company to
know about the situations of how the business is getting impacted by the external market. This
helps the business to have the quantitative investigation of the gap between the actual and
planned goals (Firoz Suleman, Rashidirad and Firoz Suleman, 2019). By this Sainsbury can take
the several steps in order to overcome from that and have better performance in the market. This
analysis is basically used by the company in order to have control by having investigation on
those areas that are not working well in the market.
CONCLUSION
From the above report it can be concluded that, business strategy mainly helps the
company to attain competitiveness while operating in the dynamic environment. Sainsbury is
mainly recognized for serving wide range of food and non-food products to large number of
consumers while operating in the dynamic environment. With using the pestle and swot analysis
mainly helps in defining the company internal and external environment factors which impact its
working for sustaining in the competitive environment. Also, with using the porter five forces
model it helps in defining about the company attaining competitiveness by using various
strategies. also, making the business management plan helps in attaining the set gaol within set
time limit. Further, with using the bowman strategic clock helps in adopting the appropriate
strategy for attaining growth for the business while operating in the dynamic environment.

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